Demand growth will drive prices up; APC targets $3.5 billion in divestitures by yearend
Anadarko Petroleum (ticker: APC) said during its conference call today that the company expects demand to surprise to the upside while U.S. production bottoms out around 8 MMBOPD, helping to support prices at $60 per barrel in 2017.

At that price, Anadarko believes it should have the cash margins to “accelerate activity and achieve strong returns,” said Anadarko Chairman, President and CEO Al Walker.

Analyst Commentary

KRL 07.27.2016

U.S. asset-level q/q production change
U.S. growth assets in the second quarter included the Wattenberg Field (+2%,
up ~4 Mboepd) and the Delaware Basin (+8%, up ~3 Mboepd). Notable
second quarter U.S. production declines included the Marcellus (-12%, down
~64 Mmcfpd), the Greater Natural Buttes (-11%, down ~48 Mmcfepd), the
Haynesville/Cotton Valley (-2%, down ~30 Mmcfepd), the GOM (-6%, down ~5
Mboepd) and the Eagle Ford (-1%, down ~1 Mboepd).
Wattenberg/Wolfcamp/GOM – U.S. value drivers
Wattenberg: The company plans to conduct a one-rig program and drill ~45
wells this year. Anadarko anticipates ~60 wells WOC at YE’16. Niobrara/Codell
wells commence at 700+ Boepd and should recover ~350 Mboe (~60% liquids)
for a cost of ~$2.4 million (~30% IRR).

Demand growth will drive prices up; APC targets $3.5 billion in divestitures by yearend Anadarko Petroleum (ticker: APC) said during its conference call today that the company expects demand to surprise to the upside while U.S. production bottoms out around 8 MMBOPD, helping to support prices at $60 per barrel in 2017. At that price, Anadarko believes it should have[Read More…]